As companies in the business sector continue to respond to the devaluation of the Malawian Kwacha by 44 percent against the USD, South African Airways (SAA) has suspended all air ticket sales in Malawi.
The Reserve Bank of Malawi (RBM) on Wednesday November 8, 2023 devalued the kwacha by 44 percent and the Malawi kwacha will now be sold at K1,700 against the US Dollar, up from K1,180, effective Thursday, November 9, 2023.
In response to this, SAA which resumed its flights between South Africa and Malawi earlier this year, in a press statement dated a Wednesday November 9, 2023, says the selling of air tickets in Malawi will not continue with immediate effect.
“In light of yesterday’s devaluation of the Malawian Kwacha by 44% against the USD, South African Airways (SAA) has made the difficult decision to suspend all air ticket sales that are bought in Malawi with immediate effect.
“Bookings and sales for tickets from outside Malawi, purchased in any other currency continues. Similarly, flight operations between Johannesburg and Lilongwe and Blantyre are continuing uninterrupted,” reads part of the statement.
In the statement, SAA’s Chief Executive Officer, Prof. John Lamola is qouted saying; “Our decision to suspend sales is a risk management intervention in response to Malawi’s current economic conditions that is characterized by acute foreign current shortages. This should not be interpreted as a step back from the airline’s commitment to serving the people of Malawi and promoting trade links between South Africa and Malawi.
“SAA values its relationship with the Malawian market and its customers and thanks its customers for their understanding and continued support during these challenging times. We are closely monitoring the situation and are dedicated to resuming sales and ticket services from Malawi as soon as the situation warrants the substance of financially efficient operations from this route.”
Meanwhile, more companies are adopting the 44 percent devaluation in their adjusted prices but the Malawi government has owned to take necessary steps against manufacturers, traders and suppliers of goods who are taking advantage of the devaluation to raise prices of goods and services unreasonably.
